Wellness Programs Won't Necessarily Improve Health or Lower Costs

Wellness Programs Won’t Necessarily Improve Health Or Lower Costs---Case Analysis Fan Tang

In recent years, more and more businesses have instituted wellness programs that range from distributing health-oriented newsletters to installing high-tech fitness facilities on the premises. According to a federal government survey, nearly two thirds of all companies with fifty or more employees offer some type of wellness activity. Generally, there are several reasons to explain the growing number of wellness programs. On one hand, the USA spends more dollars on health care than any other nation yet it is not the world’s healthiest, use of tobacco is still popular and alcohol continues to take its toll on American citizens; much of the disease in the USA is preventable, as much as 70% of the cost of health care is driven by preventable illness and tobacco and alcohol are leading causes of death; healthcare costs, which has been ordinarily the number one benefit cost to most companies, continue to rise and to be passed on to the employees. On the other hand, a lot of employers have become aware of the increased pressures associated with downsized businesses, a rapidly changing worksite, an aging work force, and the challenge of balancing work and family obligations. They demonstrate a commitment to their most valuable resource---their people, share a common belief that healthy employees are more satisfied, absent less and more productive, and start to view health as a competitive economic advantage. But at the same time, many of these employers are frustrated that traditional health plans have not focused enough resources on preventive care. In particular, traditional health plans have not yet reigned in enough savings from the health plan costs attributable to treatment of chronic disease and ailments stemming from unhealthy lifestyle choices. Even health maintenance organizations and other...